COMMISSIONER OF TAXATION
The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from Branches of the Australian Taxation Office or at http://law.ato.gov.au.
NOTICE OF RULINGS |
Ruling Number | Subject | Brief Description |
TD 2014/13 | Income tax: the application of Article 10.2(a) of the United Kingdom Convention | The Determination is an expression of the Commissioner’s opinion about the application of Article 10.2(a) of the United Kingdom Convention. The Determination applies to years of income commencing both before and after its date of issue. |
TD 2014/14 | Income tax: are the capital support payments described in this Determination deductible under section 8‑1, section 40‑880, subsection 230‑15(2) or subsection 230‑15(3) of the Income Tax Assessment Act 1997? | The Determination is an expression of the Commissioner’s opinion about capital support payments. The Determination applies to years of income commencing both before and after its date of issue. |
CR 2014/46 | Income tax: Westpac Banking Corporation – Westpac Capital Notes 2 | The Ruling is an expression of the Commissioners opinion for investors who are allotted non‑cumulative, convertible, transferable, redeemable, subordinated, perpetual, unsecured notes issued by Westpac Banking Corporation called Westpac Capital Notes 2 (WCN 2). The Ruling applies from 1 July 2013 to 30 June 2025. |
PR 2014/9 | Income tax: tax consequences of investing in the UBS Structured Option and Loan Facility | The Ruling sets out the Commissioner’s opinion about the scheme referred to as UBS Structured Option and Loan Facility. The Ruling applies prospectively from 4 June 2014, the date it is published. |
PR 2014/10 | Income tax: tax consequences for a customer holding a Home Buy Savings Account and a home loan with the Commonwealth Bank of Australia | The Ruling sets out the Commissioner’s opinion about the scheme referred to as Home Buy Savings Account offered by the Commonwealth Bank of Australia. The Ruling applies prospectively from 4 June 2014, the date it is published. |
PR 2014/11 | Income tax: W.A. Blue Gum Project 2014 | The ruling sets out the Commissioner’s opinion about entities who participate in the W.A. Blue Gum Project 2014. The Ruling applies prospectively from 4 June 2014, the date it is published |
NOTICE OF WITHDRAWALS |
Ruling Number | Subject | Brief Description |
GSTA TPP 009 | Goods and services tax: is an entity that enters into an agreement to make a subsequent supply making two taxable supplies? | Withdrawn with effect from 4 June 2014. |
GSTA TPP 043 | Goods and services tax: is a client’s reimbursement to a lawyer for a payment of a tax, fee or charge (tax) that is not subject to GST consideration for a taxable supply by the lawyer if the lawyer paid the tax as an agent for the client? | Withdrawn with effect from 4 June 2014. |
GSTA TPP 050 | Goods and services tax: does the transfer of assets constitute a taxable supply under Subdivision 72‑A when a new trustee is appointed to replace the original trustee of a trust? | Withdrawn with effect from 4 June 2014. |
GSTA TPP 051 | Goods and services tax: to what extent is an acquisition creditable if an employer uses the 50/50 split method for entertainment fringe benefits? | Withdrawn with effect from 4 June 2014. |
GSTA TPP 062 | Goods and services tax: can a large capital purchase resulting in a net refund of GST in the annual return be ignored for the purposes of the Division 162 instalment option? | Withdrawn with effect from 4 June 2014. |
GSTA TPP 063 | Goods and services tax: is a partner who receives more than $50,000 in profit distributed by the partnership required to be registered for GST? | Withdrawn with effect from 4 June 2014. |
Overview
The Taxation Determinations and Rulings Notice 2014 (C2014G00895) was enacted to provide clarification and guidance on various aspects of income tax and goods and services tax (GST) for specific scenarios and transactions. This notice, issued by the Commissioner of Taxation, Chris Jordan, serves to inform taxpayers and tax practitioners of the Australian Taxation Office's (ATO) interpretation of the law as it applies to particular schemes, financial instruments, and transactions. The rulings and determinations outlined in this notice aim to provide certainty and reduce disputes by expressing the Commissioner's opinion on the tax treatment of specified items. This notice applies to income years starting both before and after the date of issue and aims to ensure taxpayers are aware of their obligations and entitlements under the relevant legislation.
Scope and Application
The Gazette C2014G00895 outlines several determinations and rulings by the Commissioner of Taxation, Chris Jordan, which provide guidance on various aspects of income tax and goods and services tax (GST) in Australia. These rulings and determinations are primarily aimed at taxpayers, investors, and entities engaging in specific financial transactions or holding particular financial instruments. They apply to income years both before and after the dates of issue, as well as to transactions and periods specified within the rulings themselves. For instance, certain rulings apply prospectively from specified dates such as 1 July 2013 to 30 June 2025, or from the date of publication like 4 June 2014. Additionally, some rulings address specific cases, such as capital support payments, investments in particular financial facilities, or participation in projects like the W.A. Blue Gum Project 2014. Notably, the rulings and determinations cover a range of scenarios, from general income tax provisions to specific financial products, thus offering comprehensive guidance for taxpayers and entities navigating the complexities of Australian tax law. Furthermore, several previously issued GST rulings have been withdrawn as of 4 June 2014, reflecting updates and changes in the legislative landscape.
Key Provisions
The Commissioner of Taxation has issued several rulings and withdrawn some technical positions regarding income tax and goods and services tax (GST). The rulings provide clarity on specific tax issues, while the withdrawn technical positions are no longer applicable. The main operative sections include TD 2014/13, TD 2014/14, CR 2014/46, PR 2014/9, PR 2014/10, and PR 2014/11, which offer the Commissioner’s opinions on various tax matters. The withdrawn sections, such as GSTA TPP 009, GSTA TPP 043, GSTA TPP 050, GSTA TPP 051, GSTA TPP 062, and GSTA TPP 063, have been rescinded and are no longer in effect.
These rulings impose obligations on taxpayers to understand and apply the Commissioner’s opinions on specific tax issues to ensure compliance with tax laws. For example, TD 2014/13 and TD 2014/14 provide clarification on the application of certain tax provisions, which taxpayers must consider when preparing their tax returns. Similarly, CR 2014/46, PR 2014/9, PR 2014/10, and PR 2014/11 offer guidance on specific investment schemes and arrangements, requiring taxpayers to adhere to the Commissioner’s views on the tax consequences of these transactions. The withdrawn rulings, which are no longer applicable, do not impose any ongoing obligations on taxpayers.
Failure to comply with these rulings may result in civil or criminal consequences, including penalties. For instance, if a taxpayer does not follow the Commissioner’s opinion on a tax issue as outlined in one of the rulings, they may be subject to additional assessments, interest charges, or penalties under the Income Tax Assessment Act 1997. The maximum penalties for tax-related offences can vary widely depending on the nature and severity of the offence, but they may include fines, imprisonment, or both. It is essential for taxpayers to stay informed about the applicable tax laws and rulings to avoid potential penalties.